§ 45.1-361.31. Bonding and financial security required
A. To ensure compliance with all laws and regulations pertaining to permitted activities and the furnishing of reports and other information required by the Board or Director, all permit applicants shall give bond with surety acceptable to the Director and payable to the Commonwealth. At the election of the permit applicant, a cash bond may be given. The amount of the bond required shall be sufficient to cover the costs of properly plugging the well and restoring the site, but in no case shall the amount of the bond be less than $10,000 per well plus $2,000 per acre of disturbed land, calculated to the nearest tenth of an acre. Bonds shall remain in force until released by the Director.
B. Upon receipt of an application for permits for gas or oil operations and at the request of the permit applicant, the Director may, in lieu of requiring a separate bond for each permit, require a blanket bond. The amount of the blanket bond shall be as follows:
1. For one to fifteen wells, $25,000.
2. For sixteen to thirty wells, $50,000.
3. For thirty-one to fifty wells, $75,000.
4. For fifty-one or more wells, $100,000.
For purposes of calculating blanket bond amounts, from one-tenth of an acre to five acres of disturbed land for a separately permitted gathering pipeline shall be equivalent to one well. The Director shall promulgate regulations for the release of acreage used to calculate blanket bond amounts for separately permitted gathering pipelines in cases where sites have been stabilized.
C. Any gas or oil operator who elects to post a blanket bond shall pay into the Gas and Oil Plugging and Restoration Fund those fees and assessments required under the provisions of § 45.1-361.32.
D. This section's minimum requirements for bonding shall be met by all permitted gas or oil operations by July 1, 1991.
(1990, c. 92.)
Sections: Previous 45.1-361.24 45.1-361.25 45.1-361.26 45.1-361.27 45.1-361.28 45.1-361.29 45.1-361.30 45.1-361.31 45.1-361.32 45.1-361.33 45.1-361.34 45.1-361.35 45.1-361.36 45.1-361.37 45.1-361.38 NextLast modified: April 16, 2009